Dublin, 5th April 2021 - Property consultants CBRE Ireland have today released figures for the volume of take-up achieved in both the Dublin office and industrial & logistics sectors during the first three months of 2021. Take-up in the industrial and logistics sector in the capital was healthy at 52,045m2 in Q1 having been boosted by extra demand as a result of Brexit and Covid-19. However, take-up in the Dublin office market was exceptionally low in Q1, with only 3,752m2 of office leasing activity signed in the three-month period, despite there being almost 50,000m2 of office accommodation reserved. There were 32 transactions signed in the industrial and logistics sector in Dublin in Q1 2021 compared to just 13 transactions in the office sector in the capital.
According to CBRE, there was a notable increase in demand for both offices and industrial accommodation quarter-on-quarter, which points to an anticipated increase in transactional activity in both sectors once current lockdown restrictions lift. At the end of Q1 2021, there was active demand for almost 270,000m2 of office accommodation while demand for industrial accommodation increased to 185,000m2.
Marie Hunt, Executive Director at CBRE said, “Take-up in the Dublin office market in Q1 2021 was extremely low, particularly in comparison to the same quarter last year (one of the best quarters of office take-up ever recorded in the Irish capital) before the onset of the pandemic and lockdown. Q1 2021 will be a major turning point for the Dublin office market. The only way is up from here. The national vaccination programme is now well underway and with an expectation that office workers will get back to their workplaces later this year, we have witnessed a discernible increase in enquiries for office accommodation in the capital over recent months. In total, demand increased by more than 15% quarter-on-quarter to reach almost 270,000m2 at the end of Q1 2021, which is encouraging. This increased appetite has been in evidence since Q4 2020 and has followed through into the opening months of 2021. Another important point is that almost 50,000m2 of office accommodation is currently reserved in the capital, which bodes well for transactional activity later in 2021. Meanwhile, boosted by increased demand on the back of Brexit and Covid-19, demand for industrial property has remained robust over recent quarters but is also expected to escalate from this point forward, with demand having more than doubled quarter-on-quarter in Q1, stymied only by a shortage of modern accommodation, which in turn is fuelling pre-letting activity in this sector.”
CBRE U.C., (CBRE Ireland) registered in Ireland, no. 316570. PSRA Licence No. 001528 is the country’s largest commercial real estate services company with offices in Dublin and Cork. Currently employing over 150 employees, we work with occupiers, investors and developers of office, industrial and logistics, retail, hotel and healthcare property, providing strategic advice and execution for property sales and leasing; tenant representation, corporate services; property and project management; appraisal and valuation; development services; investment management and debt advisory; business rates and compulsory purchase and research and consulting. Please visit our website at www.cbre.ie
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com